• 12% of the U.S. population is foreign born.
• An increasing share of first time buyers are immigrants.
• In 2005, 10% of all homeowners were immigrants.
• In 2005, 18% of first-time home buyers over the previous four years were immigrants.
  

• In almost all cases, you will not have the opportunity to see the interior of the property before the sale.  This is a tremendous risk, as the interior condition could greatly affect the value of the property.
• Related to the above risk, you will not have the opportunity to have a home inspection, well inspection, septic inspection, termite inspection, etc.  You will be buying the property "as is, where is."
  
• A very quick closing (often 15 days) is required by almost all Trustees.  This is a tight time frame, which must be adhered to.
• A deposit is typically due at the time of sale of anywhere from $10,000 to $30,000.  This must be in cash or certified check, and can prohibit some potential buyers from participating in a foreclosure sale.

• Sometimes banks are willing to take some money, any money, just to sell a property.  Earlier this month (January 2008), a property with an outstanding loan balance of roughly $200,000 could have been purchased for $127,000.  The bank's bid was $126,000.  Even if the property is not currently worth a full $200,000, there was likely a profit margin in this sale.
  
• There is often less competition (amongst potential buyers) at a foreclosure sale.  The information about these sales are not promoted very heavily, and many buyers do not know about the availability of such properties.  With fewer buyers on the scene, the sales price will likely not be as high.
• If the mortgage that is being foreclosed upon is not a recent mortgage, the owner will have likely paid down the balance of the loan, and the property will have appreciated.  This means that what the bank needs to recoup from the Trustee Sale could be quite a bit lower than the market value of the property.  Of note, most of the sales in the past few months have been on mortgages issued within the last 2-3 years. This has not provided for too much of a cushion to allow for a great deal.
  

• stick-built homes are more structurally sound, as they are built on the piece of land where they will permanently reside --- and fit themselves, structurally, to the contour of the land as they are built . . .
• modular homes are more structurally sound, as they are built in a controlled environment, without being exposed to precipitation, wind, etc. during the construction process . . .
• modular homes allow for a faster construction schedule . . .
• stick-built homes allow for greater design flexibility . . .

• there are both high quality, and low quality stick builders and modular home manufacturers . . .
• the modular housing industry is exploding, with ever-increasing options and design features --- as evidenced by the impressive house pictured above, from Haven Homes.
  

Last week, the Virginia Association of Realtors released the 2007 Year-End Market Report, which creates a context for year end market data throughout the state of Virginia. Along with providing insight and analysis into the many local, state and national issues that affected this Virginia's real estate market this year, the report also points out that market conditions vary considerably in different areas of the state.

For example, of the 23 local markets for which data was available, only two markets showed an increase in the number of homes sold in 2007 (versus 2006).  The other 21 local markets all showed a decline in sales as compared to 2006. Overall, the state of Virginia showed an 18.46% decrease in homes sold, but there were quite a few outliers:

• Dulles Area (+ 9.61%)
• Southwest Virginia (+ 1.44%)
• Eastern Shore (- 46.68%)
• Prince William (-30.46%)
• Northern Neck (- 29.74%)

However, despite the decrease in number of real estate transfers this past year, sales prices remained relatively flat as compared to 2006. Median Prices were up 1.2 percent in 2007, and average prices were down 3.1 percent.

Overall, the report is hopeful . . .

• "Virginia faces stronger market fundamentals than many other states, with a relatively strong economy and a housing market with a relatively small share of investors."
• "We expect that markets in Virginia that have strong job growth and low unemployment rates—which includes most of the metropolitan areas throughout the state—will see increases in the demand for housing in 2008 and prices will begin to rise."

In April, we will see more great analysis and insights from the George Mason University School of Public Policy, whose staff will be continuing to provide these reports for each quarter of 2008.

• water source (public water, well, cistern, etc)
  
• waste treatment options (public sewer, conventional septic system, alternative septic system, etc)
• utility availability (electricity, phone, cable)
• covenants and restrictions
• access
  
• easements
• right of ways
• setbacks
  
• flood plains
• school districts
• zoning
• uses of surrounding parcels

The first thing to know about the home inspection process is that it is a process for the benefit of the buyer. 

• agreeing to make all repairs
• offering to make some repairs and/or provide some sort of credit to the buyer
  
• declining to make any repairs or monetary concessions

• the buyer unreasonably requesting the repair of non-material defects
• the buyer unilaterally deciding they do not want to buy the house because of what is discovered through the inspection process --- while the seller agrees to make all repairs
• an inspector who in his/her efforts to provide the best possible service to the buyer ends up providing a detailed inspection report that makes the buyer overwhelmed by the needed repairs
• the seller thinks the "deal is done" when the contract is ratified, and doesn't realize that further negotiation might be necessary as the buyer learns more about the property during the inspection process

• To the best of my knowledge, the only way to monitor upcoming foreclosure sales is to pore over the classifieds section of the Daily News Record each day, and tear out any notices that you find.  Not too convenient, especially in an age where more and more people would prefer to find and consume information online.
• I have several clients who are always interesting in acquiring a property via a foreclosure sale, and have asked me over the past few years if there is any better way to keep track of upcoming sales and the results of past sales.
• Given the need described above, I have started posting details of all Harrisonburg and Rockingham County foreclosure sales (that I can find) on my blog.  To check back solely on the foreclosure sale content of my blog, use this address:
  http://www.scottprogers.com/blog/category/foreclosure/

• Real Estate Information System - owner, property and assessment information
• Geographic Information System (GIS) - interactive map
• City Maps - top maps, tax maps, etc.
  
• Zoning Code
• Comprehensive Plan
  
• Harrisonburg City Schools
  

• Geographic Information System (GIS)
• Zoning Code
  
• Comprehensive Plan
• Rockingham County Schools
  

• Tax Records (city and county, via our MLS)
• Recorded documents (via subscription)
  

• First, the zoning request doesn't have a lot to do with whether or not the 1,000 residential units will be developed.  The current zoning of the property allows 1,054 residential units to be developed.  The request, per the Planning Commission agenda, was to change the zoning from R-3 to R-5C.
  
  
• Harrisonburg recently made a change to R-3 zoning that affects a developer's right to build apartment buildings on land zoned R-3.  Building apartments on land that is zoned R-3 used to be a "by-right" use, but now (for developments post July 2010) a developer would need to obtain a special use permit for apartments. Since the referenced 72.6 acre property is currently zoned R-3, without a rezoning, if the developers wanted to build apartment buildings, they would have to either:
  
• start building by 2010, or
  
• apply for a special use permit
  
  
• The above bullet point may explain why George Pace (vice mayor) is referenced as saying that "developing the site could create a short-term glut of college student housing in the city."  I think that he is inferring that the developers might opt to go ahead and start building if they can't get the re-zoning to make sure that they can build apartment buildings.
  
  
• Of note, the developers pledged not to build more than 1,054 residential units --- the same amount that are permissible under the property's current zoning.  Again -- this re-zoning does not give the property owners the ability to build additional housing.  Even without the re-zoning, they can build the 1,054 units.
  
  
• There is also mention in the DNR article that the developers might wait to develop the project until Stone Spring Road is widened.  This would be helpful, as the new housing would certainly add quite a bit of housing to that road.
  
  
• The big question here is how the timing will end up working out on this project.  Many would assume (reasonably) that this re-zoning proposal suggests that the property will be developed soon.  My theory is that the owners want to go ahead and get it re-zoned to R-5 (possibly before lots of other property owners ask for the same), but that they will then hold onto the property for several years.